Contracts & ExecutionQuestion 835 of 1605
Assignment of a contract generally refers to:
a.Transferring one's contractual rights (such as the right to payment) to a third party
b.Canceling the contract entirely
c.Adding a liquidated damages clause
d.Delegating a duty to a third party to perform
Explanation
An assignment is the transfer of a party's rights under a contract, such as the right to receive payment, to a third party (the assignee). It is distinguished from delegation, which is the transfer of a party's duties or performance obligations. Assignment does not cancel the contract or add clauses; it simply moves the benefit of the contract to someone else, subject to any contractual limits on assignment.
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)